Citigroup today announced that its global transaction services business has been selected by AIC Limited and Copernican Capital Corp. to provide fund accounting services for their investment funds.

In addition to fund accounting, Citi, AIC and Copernican have reached tentative agreement on the provision of a comprehensive suite of securities services, including custody and securities lending.

As part of this agreement, approximately 40 AIC professionals will become employees of Citigroup Fund Services Canada, Inc., a division of Citi’s global transaction services business, and Citi will lease space in AIC’s office complex in Burlington, Ont., to supplement its current facilities to accommodate growth for fund services in Canada.

“This agreement with Citi is a prime opportunity for us to partner with a global financial services firm with a highly respected reputation and long history of service excellence in the Canadian marketplace,” says Jonathan Wellum, CEO of AIC, and chairman of Copernican. “For over 10 years, we’ve licensed Citi’s proprietary Unitrax system for transfer agency services. By outsourcing the fund accounting function to Citi, we can now concentrate on what we do best: delivering tax efficient, above-average returns over the long run to investors who choose our funds. At the same time, this agreement provides our fund accounting staff with a remarkable career opportunity to join a global leader in fund services.”

AIC is one of Canada’s largest privately-held mutual fund companies with assets under management exceeding $8 billion.